Capstone Turbine Corp. said it received another 1.6 MW of long-term microturbine rentals in the Permian Basin, which is in addition to 2.0 MW rented just a week earlier.
All 3.6 MW are being rented by one of the world’s largest oil and gas producers, Capstone said. Both long-term rentals were secured by Capstone’s new distribution partner, Lone Star Power Solutions. The first two units were delivered and are in the process of being commissioned, while the next two C800 microturbines are expected to be delivered and commissioned in November.
Capstone said it is focused on securing additional long-term rentals in the Permian Basin to drive market awareness and the company’s target of sustained double-digit growth.
“These long-term 3.6 MW microturbine rentals are a significant opportunity for us as this is our first transaction with this major oil and gas company in the Permian,” said Darren Jamison, Capstone’s president and CEO. “Rentals are key as the recurring revenue stream they generate will improve our expense absorption and gross margin and help us reach our profitability goals.”
Capstone said the oil and gas company sought a flexible and scalable energy solution that could be quickly and easily deployed within 45 days and increase power capacity and accommodate the growing energy needs of its installations. Natural gas generators are gaining popularity in the rental market due to their lower emission profile compared to diesel rental generators, Capstone said.